v\Sunny introduces a new compact music player that carries a two-year warranty against manufacturer's defects....
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v\Sunny introduces a new compact music player that carries a two-year warranty against manufacturer's defects. Based on industry experience with similar product introductions, warranty costs are expected to be approximately 3% of sales. By the end of the first year of selling the product, total sales are $29.7 million, and actual warranty expenditures are $170,000. Record the adjusting entry for the remaining expected future warranty costs as of December 31, the end of the reporting period. (If
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